SunPower Inc. Q2 FY2024 earnings call

• CEO T.J. Rodgers introduced new CFO Dan Foley. - Discussed SunPower's Chapter 11 bankruptcy and the stalking horse bid of $45 million for certain assets, with potential additional liabilities of $7.2 million. - Raised $46 million in July 2024 to address working capital issues, paid off debt, and reduced OpEx. - Appointed Linda DeJulio as acting CEO. - Cole Farmer, VP of Sales and Marketing, reinvigorated sales with 29 active Sales Partners and increased orders, showing progress in addressing revenue concerns.

In the second quarter, Complete Solaria had revenue of $4.5 million. Operating Expenses (OpEx) were $4.4 million, a two-year low, with plans to reduce it below $3 million in the next two quarters. They acquired Core Energy, bringing in 37 employees who were integrated into the company. Revenue contribution was primarily from solar-related activities, though no distinct product segments with specific percentage breakdown were detailed.

• Expect Q3 2024 gross margin to bounce back to 30% plus. - Aim to reduce OpEx below $3 million in the next two quarters. - Mentioned the combined company with SunPower could reach $100 million per quarter.

• Previous working capital issues led to a significant revenue drop. - Dependence on sales partners and order yields, with orders having a 30% chance of going away. - Regulatory changes like NEM3 affecting solar revenue and profitability.

Q: About ramp up being demand limited A: T.J. Rodgers stated demand is tractable with Cole Farmer's efforts, noting they went from worrying about future to having progress in orders Q: Rationale behind acquisition and revenue/margins post SunPower A: Expect $100 million per quarter, plan to integrate with SunPower having shared values and leveraging solar market tailwind Q: Blue Raven operation A: T.J. Rodgers said Blue Raven runs well and should be left as is, as it's an excellent shop Q: Plans with financing partners A: Cole Farmer mentioned working with EverBright, LightReach, and new leasing companies, with stable capital looking into the space